As the cost of living continues to rise, many Americans are growing more weary about how the effects of inflation will affect their livelihoods in the near future and what the government will do to aid them in this struggle.
Last week, President Biden spoke out about the current impact of inflation on the United States. Specifically, he spoke to the state of the country's housing crisis, noting the immense pressure that rising costs has placed on the American people. Furthermore, he identified a detailed plan of how his administration will progressively address this issue in a set of new policies.
These policies include boosting federal funding to incentivize states to reform their respective zoning blueprints and increasing general access to better and more affordable housing. In a fact sheet developed by the White House about these efforts, the administration will “work with the private sector to address supply chain challenges and improve building techniques to finish construction in 2022 on the most new homes in any year since 2006." It was also noted that Housing and Urban Development Secretary Marcia Fudge will work in conjunction with Commerce Secretary Gina Raimondo to establish ways to mitigate supply chain shortages as they power through building these new homes in an efficient manner.
“The Plan’s policies to boost supply are an important element of bringing homeownership within reach for Americans who, today, cannot find an affordable home because there are too few homes for sale in their communities. And it will help reduce price pressures in the economy, as housing costs make up about one-third of the market basket for inflation, as measured by the Consumer Price Index,” said the fact sheet.
So far, this plan has received positive feedback from housing advocates as a step in the right direction. In a quote obtained by CNN, Diane Yentel, president and CEO of the National Low Income Housing Coalition stated, “I commend President Biden for taking significant and decisive action, but the administration cannot solve the crisis on its own. Congress must also act with similar urgency and quickly enact Build Back Better’s transformative and badly needed housing investments. Only through a combination of administrative action and robust federal funding can the country truly resolve its affordable housing crisis.”